Written by Diversification.com Editorial Team • Updated June 19, 2025
5 min read • This article was created using publicly available data at the time of publication. The list includes editorial opinions, is not investment advice, and there are no paid placements.
The US real estate market has been anything but predictable. But while some metro areas cooled off, others quietly delivered double-digit appreciation. For investors looking for growth potential, identifying cities with the strongest momentum can signal where capital may compound next.
This list ranks the top 8 real estate markets by one clear metric: year-over-year property value growth through May 2025. Each metro here posted the highest percentage gains nationally — not based on hype or construction starts, but on actual trailing returns.
How We Ranked These Real Estate Markets
To create this ranking, we analyzed data from Zillow, Redfin, and the US Federal Housing Finance Agency (FHFA). Cities were ranked solely by percentage increase in median home values from May 2024 to May 2025. Population size, affordability, and rent yields were not factored into the ranking.
1. Naples, FL
- % Gain: 21.9%
- Median Home Price: $975,000
- Rental Yield: 5.2%
- Local Economy: Tourism, Health Care
- Notable Details: Strong luxury demand and limited supply helped Naples outperform both state and national averages.
2. Fayetteville, AR
- % Gain: 6.4%
- Median Home Price: $390,650
- Rental Yield: 4,62%
- Local Economy: Retail HQs, Education
- Notable Details: Walmart's continued investment in the region supports strong job growth and long-term housing demand.
3. Worcester, MA
- % Gain: 2.7%
- Median Home Price: $433,360
- Rental Yield: 4.68%
- Local Economy: Biotech, Higher Education
- Notable Details: Overflow demand from Boston and strong public transit links have boosted home values in this secondary metro.
4. Boise, ID
- % Gain: 1.2%
- Median Home Price: $501,139
- Rental Yield: 4,13%
- Local Economy: Tech, Manufacturing
- Notable Details: After a cooling period in 2023, Boise rebounded sharply, driven by low inventory and in-migration from the West Coast.
5. Knoxville, TN
- % Gain: 0.8%
- Median Home Price: $368,490
- Rental Yield: ~10–13 %, based on centralized data (city x center)
- Local Economy: Education, Manufacturing
- Notable Details: Affordable prices, strong net migration, and investor-friendly zoning contributed to outsized appreciation.
6. Raleigh, NC
- % Gain: 0.7%
- Median Home Price: $445,000
- Rental Yield: 5.11%
- Local Economy: Tech, Education
- Notable Details: Consistently among the fastest-growing metros, with strong fundamentals and low vacancy rates.
7. Tampa, FL
- % Gain: 0.6%
- Median Home Price: ~$460,000
- Rental Yield: ~5,6%
- Local Economy: Tourism, Finance
- Notable Details: Consistent growth across price tiers and strong cash buyer presence helped keep appreciation elevated.
8. Tulsa, OK
- % Gain: 0.4%
- Median Home Price: $245,000
- Rental Yield: 9.3%
- Local Economy: Energy, Logistics
- Notable Details: One of the lowest entry prices on this list and a growing tech scene continue to attract remote workers and investors.
In Summary
These 8 metro areas posted the highest year-over-year property gains in the US as of May 2025. While past performance doesn't predict future results, understanding where momentum is strongest can help investors spot opportunity — or froth.
Disclosures
- Data verified as of June 18, 2025
- This article is not financial advice
- Appreciation data may change. Always verify with official sources like FHFA, Redfin, or Zillow.